ASEAN Market Outlook

ASEAN stocks are expected to open lower today after European markets responded with scepticism to a Greek debt deal and US stocks pared gains after the Dow topped 13,000 points for the first time in four years.

Bond markets

Italian and Spanish bonds rose for a fourth day after European finance ministers agreed on a second bailout for Greece, spurring optimism the euro-area debt crisis will be contained.

•Italy’s 10-year yield dropped four basis points, or 0.04 percentage point, to 5.44 per cent, the lowest since Sept 9

•Spain’s 10-year yield declined five basis points to 5.11 percent, with the spread over bunds falling to as little as 308 basis points, the narrowest since Feb. 8.

•Germany’s 10-year bund yield rose one basis point to 1.97 percent. Germany’s two-year yield was little changed at 0.26 percent after rising to 0.29 percent, the highest since Dec. 15.

Oil prices have climbed to their highest level since May on concerns about Europe’s oil supplies.
•Benchmark crude rose by $US1.60 ($A1.49) to $105.20 per barrel in New York. That’s the highest price for oil since May 11.
•Brent crude, which is used to price foreign oil varieties imported by US refineries, rose by 55 cents to $120.60 in London.

Precious Metals

Gold futures rallied while silver ended at a three-month high amid elation over the long-awaited Greek bailout deal and a weaker US dollar.
•Gold contract for April delivery rose $US32.60, or 1.9 per cent, to $US1,758.50 a troy ounce on the Comex division of the New York Mercantile Exchange
•Silver posted a settlement high for the year at $US34.429 a troy ounce
•Platinum for April delivery rallied 3.1 per cent to $US1,684.90 a troy ounce

Base metals

Base metals closed sharply higher on the London Metal Exchange, underpinned by investor relief over a second bailout package for Greece, market participants say, despite its muted impact on the broader financial markets.
•LME three-month copper on Tuesday ended the PM kerb at $US8,449 a metric ton, up $US213.50, or 2.6 per cent, on Monday’s close.